Bulletin: FL2012005

Date:
October 30, 2012
To:
All Florida Issuing Offices
RE:
ALTA Endorsements

Dear Associates:

The Florida Office of Insurance Regulation has approved for use in Florida, effective immediately, the American Land Title Association (ALTA) Endorsements listed below.  These forms are largely designed to better coordinate with the 2006 ALTA Loan and Owner’s Policies already approved for use in the state.  They should also be easier for consumers to understand.

ALTA 14-06 (Future Advance - Priority)
This endorsement insures against (1) invalidity or unenforceability of the insured mortgage as security for Advances; (2) lack of priority of the lien of the insured mortgage as security for Advances; and (3) invalidity or unenforceability of the mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances; (4) invalidity or unenforceability of the insured mortgage because of adjustment of interest or addition of interest to principal, and (5) loss of priority of the insured mortgage caused by adjustment of interest rates and addition of interest to principal.

ALTA 14.2-06 (Future Advance - Letter of Credit)
This endorsement is designed for insurance of a mortgage securing a letter of credit or letter of credit reimbursement agreement.

This endorsement insures against (1) invalidity or unenforceability of the insured mortgage as security for Advances; (2) lack of priority of the lien of the insured mortgage as security for Advances; and (3) invalidity or unenforceability of the mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances.

ALTA 14.3-06 (Future Advances - Reverse Mortgage)
This endorsement insures against (1) invalidity or unenforceability of the insured reverse mortgage as security for Advances; (2) lack of priority of the lien of the insured reverse mortgage as security for Advances; and (3) invalidity or unenforceability of the reverse mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances; (4) failure of the insured mortgage to state the term for Advances, (5) failure of the insured reverse mortgage to state the maximum amount secured by the insured mortgage, (6) failure of the mortgagors to be at least 62 years old at Date of Policy, (7) invalidity or unenforceability of the insured mortgage because of adjustment of interest or addition of interest to principal, and (8) loss of priority of the insured mortgage caused by adjustment of interest rates and addition of interest to principal.  For purposes of the endorsement, interest includes lawful interest based on net appreciation.

For any agents that use AIM+ or AFW, please contact PropertyInfo Customer Care so they may implement these forms into your system.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.